First Time Post! Need some sage wisdom.

[Mark Pelc]

Hey there Bigger Pockets folks! I've been lurking on this forum and binging the podcast and youtube content for a year or so now and am eager to get started. I've worked to dramatically decrease my debt over the last year with the intention of banking my cash until I found a property I could move on but something stressful has happened. . .I just stumbled upon what I think is a gem, that is off market, and exactly what I was interested in getting started with. The problem is I've been dumping every bit of cash I have into getting rid of debt so I'm cash poor. Here is the deal:

Quadplex in 77581 in a highly desirable area (amazing schools)

2 900 sqft 2/1's renting for $1100 each with one car garages

2 1500 sqft 3/2.5 for $1300 (seems low) with two car garages

Units are individually metered

Owner is asking $480k but seems willing to move. All units occupied until at least next spring.

My first thought was to get an FHA and house hack it and sell my house ($50k net equity), but my wife isn't too hot on the idea of moving down the street and sharing a wall with someone. I've played with the numbers and it works as a house hack but it leaves a lot more wiggle room if we leave all 4 units producing. If you were in my situation would you just stick to the plan and save until you can write a check for a deal or would try to jump on something like this? I'm open to any wisdom that you good folks could bestow upon me.

[Pat Klug]

Hi Mark,

Personally, it sounds like this is a lot to take on after getting out of debt. First of all, will you have money to cover the mortgage when vacancies occur or when repairs are needed? Are you aware that FHA loans have upfront funding fees, higher interest rates and MIP payments for the life on the loan? I suggest talking with a lender to make sure you understand everything that's involved.

Secondly, if your wife is against this from the start, chances are she will be miserable and blame every little that goes wrong or irritates her on YOU!  There are many other ways to build up your portfolio and you and your partner need to be on the same team.  There is an article somewhere on this site about "Why you should not house hack."  Check it out.

I wish you the best!

Pat